Davutoğlu meets Turkish Central Bank officials over lira crisis

Turkish Prime Minister Ahmet Davutoğlu met the governor of the Turkish Central Bank Erdem Başçı and senior economy officials late on Saturday evening to discuss the weakened lira, sources at the PM’s office said.

Davutoğlu, Deputy Prime Minister Ali Babacan and Finance Minister Mehmet Şimşek had just arrived back from New York after meeting fund managers and bankers in New York. The damage limitation exercise followed international market reaction to comments made by President Erdoğan which were critical of central bank policies and stoked concerns for its independent status.

The Turkish lira fell to 2.6470 against the dollar (3.965/GBP) on Friday after Erdoğan demanded that the interest rate should be cut even further. The Turkish president even said that defending high interest rates was treasonous.

“Developments in domestic and foreign markets over the past couple of weeks have been discussed in the light of the prime minister’s assessments based on his impressions of meetings with foreign investors during his New York visit,” one of the sources said on Sunday.

Source Hurriyet

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